Talking Trends: price growth slows in November, inflation expectations increase
Flash estimates for November point to slower growing prices after an acceleration in October. However, elevated growth is still seen in prices for goods and services that are little affected by one-off and temporary factors. Household and business inflation expectations increased.
October saw a significant rise in economic activity. According to flash estimates and surveys, output across industries either slowed or stabilised in November. As competition for labour weakens, the gap between wage growth and productivity gains is narrowing, which is set to exert further downward pressure on inflation.
To bring inflation back to target, monetary conditions need to stay tight for an extended period.
More details are presented in Talking Trends, a Bank of Russia bulletin.